HCM 416 Chapter 1-5 Quizzes Questions and Answers Latest Update 2025/2026
Which of the following statements about finance, accounting, and financial management is
most correct?
a) Accounting is of no value in decision making.
b) Financing management is of no value in decision making.
c) Financial management is just the reporting of past organizational activities.
d) Financial management provides the theory, concepts, and tools necessary to help managers
make better financial decisions - Answers d) Financial management provides the theory,
concepts, and tools necessary to help managers make better financial decisions
Which of the following are not finance activities?
a) Planning and budgeting
b) Facilities management
c) Financial reporting
d) Financing decisions - Answers b) Facilities management
Which of the following statements about the finance department at large healthcare
organizations is most correct?
a) The department is headed by the chief financial officer (CFO) (sometimes called the vice
president-finance)
b) The CFO typically reports directly to the chief executive officer (CEO).
c) The CFO usually is assisted by a comptroller and treasurer.
d) Answers a., b., and c. are correct. - Answers d) Answers a., b., and c. are correct.
What is NOT an advantage of a proprietorship?
a) Unlimited liability
b) Ease of formation
, c) No corporate income taxes - Answers a) Unlimited liability
What is a disadvantage of being a corporation?
a) Unlimited life
b) Limited liability
c) External reporting
d) Answers a. and b. are correct - Answers c) External reporting
Pick the answer that does NOT belong.
Stockholders have....
a) A possible dividend and/or capital gains
b) Right of control
c) Claim on residual liquidation proceeds
d) Right to company product discounts - Answers d) Right to company product discounts
A not-for-profit corporation can also be called a 529(b).
True or False - Answers False
The primary goal of investor-owned corporations is shareholder wealth maximization.
True or False - Answers True
What was NOT one of the major provisions of the Patient Protection and Affordable Care Act of
2010?
a) Free preventive care
b) Banning of preexisting condition coverage limitations
Which of the following statements about finance, accounting, and financial management is
most correct?
a) Accounting is of no value in decision making.
b) Financing management is of no value in decision making.
c) Financial management is just the reporting of past organizational activities.
d) Financial management provides the theory, concepts, and tools necessary to help managers
make better financial decisions - Answers d) Financial management provides the theory,
concepts, and tools necessary to help managers make better financial decisions
Which of the following are not finance activities?
a) Planning and budgeting
b) Facilities management
c) Financial reporting
d) Financing decisions - Answers b) Facilities management
Which of the following statements about the finance department at large healthcare
organizations is most correct?
a) The department is headed by the chief financial officer (CFO) (sometimes called the vice
president-finance)
b) The CFO typically reports directly to the chief executive officer (CEO).
c) The CFO usually is assisted by a comptroller and treasurer.
d) Answers a., b., and c. are correct. - Answers d) Answers a., b., and c. are correct.
What is NOT an advantage of a proprietorship?
a) Unlimited liability
b) Ease of formation
, c) No corporate income taxes - Answers a) Unlimited liability
What is a disadvantage of being a corporation?
a) Unlimited life
b) Limited liability
c) External reporting
d) Answers a. and b. are correct - Answers c) External reporting
Pick the answer that does NOT belong.
Stockholders have....
a) A possible dividend and/or capital gains
b) Right of control
c) Claim on residual liquidation proceeds
d) Right to company product discounts - Answers d) Right to company product discounts
A not-for-profit corporation can also be called a 529(b).
True or False - Answers False
The primary goal of investor-owned corporations is shareholder wealth maximization.
True or False - Answers True
What was NOT one of the major provisions of the Patient Protection and Affordable Care Act of
2010?
a) Free preventive care
b) Banning of preexisting condition coverage limitations
